While investors were interpreting the words of Janet Yellen, something of a much bigger magnitude happened somewhere else in the world: a giant iceberg broke off from an ice shelf on the Antarctica Peninsula. The iceberg is known as ‘A68’ and weighs a trillion (1,000,000,000,000, that is) tons. To an administration that denies the existence of climate change, this iceberg will be seen as adding to the fresh water reserves of the globe and bringing some ‘coolness’ to the world. But to investors, this event should send a clear signal: climate change will have a huge impact. Not only because of the loss of lives, but also in terms of the billions of dollars of damage it will cause to the world economy. However, climate change will also come with a lot of chances for companies. To seize these opportunities, it is necessary to face the facts. This iceberg is more than an elephant in the room.
US stocks closed higher on Wednesday. In her meeting with Congress, Fed Chairwoman Janet Yellen put emphasis on the central bank’s gradual approach to normalizing monetary policy. The Dow Jones rose 0.57%, the S&P 500 added 0.73% and the NASDAQ jumped 1.10%. Volatility eased further: the VIX closed more than 5% lower. XIV ETNs had another good day, adding 2.75%. UVXY ETFs, on the other hand, recorded another loss: -5.71%.
Danny Daredevil saw his RSS decline again and close at 259%. Adventurous Anny‘s RSS remained at 33%. Solid Suzy and Lazy Larry kept their good mood of the previous days: their RSS rose to 28%.
None of our models gave a trading signal at the end of yesterday’s session.
RSS = Return Since Start | YTD = Year-To-Date | QTD = Quarter-To-Date | AAR = Average Annual Return
The Chapel Family – Episode 7
At the fair.
Danny: “Up and down and round and round.”
Suzy: “Ride on the carousel with me.”
Anny: “Near or far.”
Larry: “We’ll catch a star.”
In choir: “Isn’t it swell. To ride on the carousel. To ride on the carousel. To ride on the carousel.”